ways, and management strategies for san francisco. rfp was issued in november. >> i called this meeting to order. welcome to the san francisco county transportation authority finance committee. i am scott --

the chair of the committee. to my left is commissioner david chiu, to my right as commissioner norman yee. i would like to welcome to the transportation authority. and i want to thank gov tv, charles criminack [sounds like] -- for broadcasting today's meeting. are there any announcements? >> no announcement. >> call item two. >> are there any questions or changes for minutes.

>> comments from the public. seeing none. commissioner carver has joined us. >> item 3, -- reading from agenda. >> good morning. director for planning and happy new year to all. welcome to our newest board member commissioner yee. this item is a recommendation for an award for a consulting contract for cambridge -- we will be working together on the study to expre parking ways, and management strategies for san francisco.

rfp was issued in november. the panel comprised from our agency and -- interviews were held in january. we are recommending the award of the contract to cambridge. they're coming to the project with an almost 10 percent dbe sub. we are looking forward to working with them as soon as the award is made final to the committee and the board. >> thank you. other any questions or comments re: item number three? seeing then we'll open it to public comment. if there is any member of the public like to comment please come forward. >> i think it is -- when the meeting started late. you informed the people in the audience. very few people come to these meetings.

one of the reason is because there is no interaction between the committee and the constituents of san francisco. so this meeting started late, and i know there was an emergency of some sort. it is good etiquette to announce that. having said that, we begin this new year 2013, the san francisco county transportation authority looks at given out a lot of grants for this that and the other. and some determination has been made on this bit. what i am asking for is a quarterly or biannual report.

with see these grants made and then there is no follow-up. in light of what is going on in the nation, debt ceiling, in light of what is really going on here in the city and county of san francisco we need to involve the constituents, because the taxpayers that pay it, you may get the money from the state or the federal, it is the taxpayers who pay the taxes and we need to have some accountability and some transparency. i am not saying that this contractor is going to do his job i hope he does his job quarterly or twice a year or for the duration of this contract we get some reports. so that we can read and see what is happening. thank you very much.

>> is there any other member in of the public that would like to make comments? seeing none public comment is close. (gavel) this is an action item. >> mr. chair? >> i know there is question about work between the mta and the transportation authority. can you talk about those issues and how they were resolved? >> both agencies have responsibility especially mta which has legislation for originating parking in public policy of the transportation authority addresses transportation strategies particularly because half of the -- in the city is regional. in fact mtc is providing local match for the study. the two agencies have come together to propose jointly managing the study. will come back to this committee the memorandum of

agreement between the two entities for how we will jointly conduct the study. we both feel that it is important for us to join forces on this one. it is an important sector of transportation and we need it is important for meeting not only parking base goals of the overall cities economic development goals. >> joint operation makes a lot of sense. >> any other questions or comments? is there a motion to move item 3 two the full authority with positive recommendation? >> so moved. >> colleagues can we do that without objection? so moved. >> i will give you a review of what is happening at the federal level. then i will introduce matt

watts - sacramento, to discuss legislative needs in your packet. at the federal level at the very last hour, the night before the turn of the year, congress passed several pieces of legislation that are going to allow for continuing operations of the federal government. the debt ceiling and sequestration for the debt ceiling, congressionally established limit on the amount of the public debt reached in the final days of 2012, and through emergency borrowing measures the treasury was able to continue funding the federal government. these issues should be revisited again probably in the next week. it's been quiet in dc this week.

the sequestration act will allow federal obligations possibly is in this mid-february. the sequestration that was supposed to take effect on january 1 prevented cats to all discretionary funding programs. the highway trust fund that primarily funds the highway and transit account is protected, would not have been subjected to the sequestration got. the new starts funding programs, new source of funding for the central suburb project, we are keeping a close eye on that because there is a potential cut to the program. we are also keeping an i on the continuing resolution for the federal appropriations level. in october. in october 1, there was a six-month continuing resolution of the federal appropriation bill which expires at the end of march we expect that it will be some type of grouping with a revisiting of the debt,

the sequestration in the continuing resolution to allow for fiscal appropriations to continue to the end of the fiscal year. one of the things that was included in the bill passed at the end of the year, the commuter tax benefit extension to the end of 2013, this prosperity for the parking -- $230 per month, expiring in the end of 2013. will be watching that. next i will introduce mark watts to talk about the state legislation and what we are recommending. >> thank you very much. i am pleased to be here today and report what is going on in sacramento since i was here in the fall.

the legislature convene in the first week in december. came back in the early part of january. probably about 100 bills in each house has been introduced so far. i expect that when the deadline comes there will be over 1000 each. there are several items i want to highlight. there are two bills that are almost identical. aba on page 1 of the matrix and sb11 on page 2. the sale the past at the end of last session. there is an attempt to resuscitate the legislation. they extend the ab18 program for the alternative fuel rogan purposes and extend the carl moyer program. i have learned from staff that there is carl moyer funding from the local district

potentially available. we had indicated in working with staff, there is some uncertainty about the actual language in the bill so i want to check it out. we listed it as a wash. i recommend that you consider moving from a watch to a support position. so you understand the nuance, last year's bills and these two bills in addition to extending ab 18 and carl moyer - the oil industry would be the beneficiary of the clean fuel program, and mandate on them to install hydrogen fueling stations in exchange for their support of this effort. it was agreed that that regulatory scheme would defer

for 10 years and out of the new 118 funding some of the money would be available for hydrogen installation. it is one of those grand schemes in the capital. we are all interested for various pieces of it. one of the early builds to get the legislature. the next two bills that would like to draw your attention to, the next one is sb1 on page 2. senator steinberg's introduction of the sustainable communities investment authority. provides a coast redevelopment act, tax increment financing, voluntary tax increment financing structure. the governor did veto it last year. mr. steiner has reintroduced it. we recommend they watch; we feel the bill will go through iterations before it is

heard in its final shape. the next bill would allow him infrastructure financing districts to waive or have the requirement of a vote eliminate it in the bill. that is a key factor in this bill. the governor did veto it, not on a policy basis. he did indicate that he was more interested in a holistic six two infrastructure financing districts rather than piecemeal. there were other several bills that he vetoed at the same time so and the infrastructure finance districts will undergo a robust revision. we are recommending a watch to you.

on page 3 there are three measures, two virtually identical, sca 4 and sca 9. -- it transportation measures in la and alameda counties. sca 4 and sca 8 would propose to the people of california and measure to approve the voters wrestle for voter transportation special taxes from two thirds to 55 percent. sca 9 is a little bit of a variance on that. it too would seek to reduce the voters threshold from two thirds to 55 percent. for economic development projects. those are not well defined in the bill yet. there is a lot of work to be done on this measure so we recommended watch.

however for the two local sales tax measure bills we recommended support position. i can take questions here. i have a quick budget overview. >> what you get that update in that we will take questions. >> last week the governor release figures for the 2013-14 budget. legislative analyst said it's a reasonable budget. for the first time in recent memory you have a balanced budget in effect with a good chance of remaining in balance. the risk are mostly what might happen from the federal government and cost impact that might flow to the state in a couple of minor risks. they stamped it "prudent. " first time i've seen that in 15 years.

in the world transportation one of the key things is that the governor said we recognize the transportation-- has directed the transportation secretary to convene a series of stakeholder meetings and try to drive some suitable transportation funding solution as well as address what is the appropriate level for some of the revenues that go through transportation to enhance the availability of those funds. getting money to the local level. i might mention in the high-speed rail budget there seems to be most of the issue for rail funding was dealt with in last year's budget. there was no new appropriation mentioned in this year's budget. they are counting on the

initial construction segment to move forward and the highlight in the governors budget, they are working in the north and south regional entities to develop a suitable set of book end projects to continue funding. i will drama budget overview review to a close. >> are there any questions or comments colleagues? seeing none we will open it up to public comment. is there any public comment? please come forward. >> as you can see -- there were two sections. one federal in one state. on the federal level, whether we like it or not, we really do not have the monies for some of our huge projects. one of them being the central subway. now, it's okay for people to come here and state the process

about the funding. but what is important for the supervisors to know is what is going on at the metropolitan transportation meetings where some companies are not getting paid. and also to listen to the comments of the businesses who are impacted. it all ties in. while these deliberations are going on here, someone stating to you that this will happen, that will happen, this board has some responsibility to give feedback to the businesses in nob beach. things are not too rosy. this board has the responsible the not to kill those businesses. suffice it to be to speak on the federal issues with that statement.

for the state it is the same. we have to figure out a way how we can have an interaction with our colleges and universities and other small groups. send them to sacramento. we don't do this. some of our advocates all these years have been going to sacramento. the processes very convoluted. it's good that we have jerry brown there. he has balance this budget. the board of supervisors, the city, the legislative branch, in the executive branch in 1996, willi brown took the city administrator's position and join it to the executive branch. let's talk about the legislative branch. it is incumbent for you to send

young people to sacramento so they know the process, the convoluted process much as we have a convoluted process here at city hall. thank you very much. >> is there any additional public comments? seeing none, commissioner -- >> i have a question to mr. watts. you mentioned ab 8 and sb 11 extend the carl moyer program. would you recommending that we take a support position? >> the two bills 8 an d sb 11 they are identical measures. >> i move that amendment to support ab8 and sb 11. >> is there second to that motion? to forward this to the board authority? >> second.

>> is there any discussion on that? we move this forward as proposed with a positive recommendation? that will be the order. (gavel) >> item number five. clarification. it is actually a 20 million piece of the high-speed rail; >> thank you. item number five. >> acceptance of the audit report for the fiscal year, june 30, 2012. >> good morning, cynthia fong deputy directorr for finance administration. you have a report for the fiscal year ending june - 2012. since there are more than 500,000 dollars of federal

expenditures spent during the fiscal year. single audit included audit over the yerbabuena ramps, buildings and structures dynamic traffic assignment model development project; integrated public private partnership travel demand program; and several competition programs including the congestion management, bayshore intermodal station access study, market octavia station action plan, market street station area plan and eastern neighborhood transportation and limitation plan study both .auditory performed by -- o'conel, also the auditors for the city and county of san francisco. today we have cindy kahn to walk through the results of the audit.

each of you should have a copy of the powerpoint presentation in front of you. >> thank you. >> good morning. thank you for inviting me to discuss the results of the authority's 2012 financial and federal compliance audits. i will go through the audit responsibilities in the scope of the work and discuss key elements of the two deliverable reports. the first report of the financial statement and the single audit report. this report is going to be disseminated and uploaded to the federal data clearinghouse upon approval and acceptance of the report. in the second report is a letter to the finance committee. the purpose of the financial statement audit is to obtain reasonable assurance that the amounts and related

disclosures are fairly stated. the applicable framework we are following clearly accepted accounting principles or gap; generally accepted auditing principles in government audit standards promulgated by the us government accountability office. as discussed on page 26 of your packet, our audit report has found that particular item, and discusses the scope of the audit and includes the authority's governmental activity, full accrual consolidated financial statement and the four major governmental funds including the sales program, transportation management, and then relatively new major fund, vehicle restriction fee for transportation improvement program and the remaining fun information which accounts for the authority's owner and

control of insurance program deposits. the responsibility of the statements rest with the authority in our this possibility is to express an opinion based on these statements based on our audits. we performed the audits within the framework discussed earlier and render an unqualified opinion. which means the financial status presenters are free of material errors. these financial statements represent fair accordance with gap. in addition to our report on the financial statement we also prepared a report on internal control of financial reporting and noncompliance. this report is found on page 66 of your packet and is required. in addition to the financial

statement audit, the authority is required to have a federal single audit because it expended more than 500,000 in fiscal year 2012. the authority spent 5.1 million of federal awards. page 73 of your packet shows a summary of the results of these audits. the authority had a positive result in the federal awards program in fiscal year 2012, and qualified report on federal compliance. in addition to the reports we issued a separate report to the finance committee. which includes required indications. the required communications include the following 8 topics.

the qualitative aspect of accounting practices; and whether or not there were any new accounting standards that were implemented. there was one new accounting standard that was implemented it is primarily due to disclosures to your opep plan. and whether or not there were difficulties encountered in performing the audit; whether or not there were correct or incorrect statement; whether there were disagreements with management; management representation; whether management consulted with other independent accountants and other financing issues. in summary we have the cooperation of management and we did not have difficulty confirming this past year's audit. current year comments include two four we saw an opportunity

for strengthening internal control over financial reporting. these comments are found on page 79 of your package; item 2012-01 discusses the accounting and financial reporting for operating leases. items 2012-2 discusses ensuring that the integrity of the data are vital to the actuary is good so that the evaluation results are reliable. in the last comment is to inform the organization to start preparing for the implementation of the significant new pension accounting standards required to be implemented in a little over two years. with that this concludes my overview of the authority's 2012 financial statement and federal compliance audit. i'm available for comments and questions. >> i will ask staff to respond